Solar manufacturer LONGi is one of two Chinese renewable energy companies to withdraw bids for a Romanian solar park. The second includes two subsidiaries of Shanghai Electric.
A German arm of LONGi pulled out of the procurement process late, according to the Financial Times, following the launch of an investigation by the European Union (EU) to assess “market distortion”.
The investigation will now be halted following LONGi et al’s withdrawal.
The 110MW solar park in Romania is funded in part by the EU, which utilised a new foreign subsidies regulation designed to protect the interests of EU members. When the regulation was last used in March under similar circumstances in Bulgaria, a Chinese company again abandoned their bid process.
LONGi confirmed that they had withdrawn their bid, noting that the company was committed to working with its European partners to help achieve the bloc’s climate goals.
EU concerns
The incident highlights concerns by European solar manufacturers that Chinese-produced photovoltaics are undercutting and undermining their products, as oversupply has led their solar panels to cost approximately half of the May 2023 figures.
Brussels-based think tank Bruegel published that 95% of solar panels used in the EU are supplied by China. Meanwhile, large European manufacturers have cut production or closed their plants – with German manufacturer Meyer Burger as cited example.
In a statement, The China Chamber of Commerce said they were concerned about the European Commission’s “selective” disclosure during the regulation process. It also stated that bids for the Romanian solar park included other non-EU companies whose investigations were not as severe.
